Media agencies are entering 2026 with more stable budgets but far less rigid planning, according to Digiday’s latest Media Agency Report. The research, based on a survey of 30 agency professionals and a focus group with senior executives from Go Fish Digital, Horizon Media, Novus, Tinuiti and UM, maps how spending is moving toward AI search, streaming, creators — and the costs that come with them.
Budgets are stable, commitments are flexible
Client budgets are holding up. More than a third of respondents (36%) said media budgets remained the same in 2026, while 32% saw increases and 18% saw decreases. But that steadiness did not translate into long-term upfront commitments. Executives said clients are holding back dollars in the May upfront to keep the ability to move spend across channels.
“We have seen more clients looking for flexibility and holding back their dollars in the upfront,” said Marcy Greenberger, chief investment officer at UM.
Looking ahead, 39% of respondents expect budgets to stay flat in 2027 and another 39% expect growth.
Where the money is moving
The sharpest increases came in AI search and streaming video/CTV, each cited by 89% of respondents. Creator/influencer marketing and social media followed at 78% each. Meanwhile, out-of-home and broadcast media dropped for 60% of respondents.
That reallocation is not entirely one-directional. About 40% of respondents also saw decreases in social, creator and CTV spend — a sign that digital channels are being scaled up and down quickly as priorities shift. Live sports remains one area where advertisers keep committing.
Creators become a performance channel
Seventy-five percent of agency and brand respondents said creator marketing became at least a little or significantly more important over the past year. Agencies are now negotiating direct distribution rights for creator content, with Go Fish Digital president David Dweck reporting “a 40% to 60% uplift against typical, traditionally produced creative units, mainly on TikTok.”
TikTok Shop also moved into formal agency RFPs alongside Amazon and Walmart. The creator-retail tie is being measured more closely: Omnicom Media struck an agreement with Meta to connect Walmart Connect purchase data with Instagram creator campaigns.
- Build flexibility into client commitments so dollars can move with performance.
- Treat creator content as reusable paid social assets, not one-off posts.
- Track AI tool costs at the employee or token level before they erode savings.
AI’s savings are real, but so are its costs
Nearly a third of companies spend more than $10,000 per month on AI, according to Ramp. In Digiday’s survey, 45% of agency respondents said AI cost about as much as expected, but 31% said it cost more. The payoff is visible: 70% said AI saved costs through efficiency, and 59% said their agency is monetizing AI through new products.
The next test is AI search. Seventy-seven percent of respondents plan to increase budget for AI search and GEO strategies in the next 12 months, with 40% pulling from general marketing and 20% from traditional search.
For marketers, the report frames a clear shift: budgets are chasing measurable, flexible channels where consumers are actually spending attention — and AI and creators are at the center of that plan.
Source: Digiday
